Bayer backed in liability trial

Posted: Wednesday, March 19, 2003

The Associated Press

CORPUS CHRISTI (AP) - A jury Tuesday cleared Bayer Corp. of liability in a $560 million lawsuit that accused the drug giant of ignoring reports that linked the cholesterol-lowering drug Baycol to more than 100 deaths.

The jury of nine men and three women deliberated the nine-question charge for 212 days before returning their unanimous verdict.

Plaintiff Hollis Haltom, 82, suffered the muscle-wasting disease rhabdomyolysis within weeks of taking doctor's office samples of the drug as a cheaper alternative to Lipitor.

"We're not happy about it, especially my father," said Holly Haltom, daughter of plaintiff. "He felt he'd been under such scrutiny. We thought this was just going to be this little trial in Corpus Christi. My heart goes out to all the others, especially victims who died."

Plaintiff attorney Mikal Watts said he and the Haltoms were surprised at the decision and were weighing an appeal.

"Sadly, Mr. Haltom and his family will never recover from the damage Baycol has done," he said. "But we're going to continue to fight, for Haltom and his family and for the thousands of others."

Defense attorney Philip Beck called the verdict "a vindication of the jury system and a vindication of our client."

South Texas has a reputation for plaintiff-friendly juries and large jury awards, including the $43 million verdict Watt's won for damages caused by the diabetes drug Rezulin.

Bayer shares traded on the New York Stock Exchange soared after the verdict, closing at $15.40, up $4.16, or 37 percent.

The case was the first among 8,000 pending around the world to reach a jury, and stock prices had plummeted about a fourth after the trial opened on Feb. 18.

Analyst Jon Fisher with Fifth Third Bank in Cincinnati called it "a definite positive surprise" for shareholders. "The big concern for Bayer has been that they don't have enough insurance to cover all the lawsuits."

"I expected them to lose the case," Fisher said.

About 500 cases are on the table, Beck said, and the company had no plans to change its strategy of compensating out of court and would not now attempt to "drive harder bargains." He said Bayer's attempts to compensate Haltom were rejected by Watts, who insisted any settlement deal included about 1,400 other plaintiffs.

Attorneys for Haltom sought $568 million in the suit, $500 million as punitive damages.